Qualcomm set for battle over electronic chips

However, competition among mobile chip makers is set to intensify as companies such as Intel are vigorously pushing the mobile initiative.

Intel re-entered the mobile chip making sector last year due to declining business in the global personal computer industry.

In November, Intel announced it would ship 22-nanometer chips for smartphones in 2013. The new product will directly compete with Qualcomm's chips.

"The structure of the mobile market is quite different from the PC market. We have started from the mobile space and focused on power consumption and a high degree of integration of multiple technologies," Jacobs said, suggesting Qualcomm's technology edge will keep the company ahead of competitors such as Intel.

In the short term, Intel will continue to play catch-up in the world of low power processors and in the smartphone market, where Qualcomm dominates, Peng said.

"The competition in the mobile processor market is highly intense, and Intel has more competitors in addition to Qualcomm."

Qualcomm was optimistic about its business despite the mounting threats.

The company expects its revenues for fiscal year 2013 to hit $23 billion to $24 billion, up from $19.12 billion in the previous fiscal year. The company's fiscal year ends on Sept 30.

Also optimistic were the analysts.

Because of the robust growth of the global smartphone market, analysts on Wall Street set the one-year median price of Qualcomm at $74.50, an increase of more than 15 percent compared to its current price, said CNNMoney.com.

Peng from Canalys projected Qualcomm will remain in "a very strong position" in China as the penetration rate of third-generation telecommunications and more advanced 4G LTE technologies are set to grow.

"In addition, as more Chinese smartphone vendors are pushing their businesses overseas, Qualcomm is well placed in this trend," she said.

gaoyuan@chinadaily.com.cn

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